Account

5 Steps to Obtaining a Mortgage

Today’s stricter lending environment means that processing a mortgage application is more complex than ever, given the number of steps that lenders, underwriters, and mortgage insurers must all complete beforehome buyers truly have their financingin place.

To help ensure the process goessmoother, you can also take steps ofyour own. It’s a good idea to discussthe process with your AccreditedBuyer’s Representative (ABR®),even before shopping for homes. Byplanning ahead, you’ll be in a muchbetter position to negotiate and moveforward on a purchase—and avoidany unpleasant surprises regardingyour mortgage.

1. EVALUATE AFFORDABILITYLenders and mortgage insurers lookat a variety of factors, but the twomost important are your monthlymortgage payment and your total debtload, relative to your gross income.As a home buyer, it’s also importantto consider additional expenses,beyond your mortgage payment, thatcan impact how much home you canafford. Depending on your situation,these other expenses could includeproperty taxes, mortgage insurance,homeowners insurance, homemaintenance expenses, homeownerassociation fees, parking expenses,and utilities.

2. DISCUSS YOUR OPTIONSDeciding what type of mortgageis best for you depends on yourpersonal situation, your fi nancialscenario, and your future plans.For example, if your down paymentisn’t large enough to qualify fora conventional loan, an FHAmortgage can be an excellent option.Alternately, you may qualify for anattractive program offered at thenational or local level. Mortgageprograms are always changing, so askyour ABR® about current options.

3. INTERVIEW LENDERSYour ABR® can provide severalrecommendations, based on pasthome buyers’ experiences. Ratesand fees are typically very competitivebetween lenders, so it’s often moreimportant to focus on other factors,including the level of service providedand how well they’ve executedtransactions for other buyers. Thetype of mortgage you are seekingmay also impact your choice oflender, since some are more familiarwith certain mortgage programsthan others.

4. GET PRE-APPROVEDCompleting a loan application withone or more lenders will help confi rmwhether your intended mortgagefinancing plans will work out ashoped, or if you must modify yourplans. It’s important to understandsince preapprovals are contingentupon the lender receiving fulldocumentation, your preapprovaldoes not guarantee that you have amortgage. Still, it’s an important fi rststep that will also put you in a betternegotiating position with sellers.

5. COMMIT TO A LENDERAs soon as you are under contract topurchase a home, commit to workingwith one lender to complete yourmortgage application. You will probablybe charged a fee at this point becausethis is when the lender starts incurringprocessing expenses on your behalf.

Get In Touch

Thank you for contacting us, we'll get back to you shortly.

Sorry, we are unable to send your message at the moment. Please try again later.